Financial management, accounting

Financial management, accounting

Title
General knowledge of Taxation in Greece - Physical and Legal Persons
Country
Greece
Description
A tax is an obligatory fee paid by citizens to the State. It provides the State with income, which allows it to offer services such as Education, Health, Defense, etc. In other words, it is like citizens paying a "mandatory subscription" in order to be able to use the different services of the State. A principle of taxation that is called the “principle of benefits” states that the taxes people pay should be based on the benefits they derive from the services provided by the State. The application of the principle of fiscal capacity, states that taxes should be levied on each individual according to his/her ability to bear the tax burden. In the text below the direct and indirect taxes imposed on the income of individuals and businesses in Greece are presented, e.g. the real estate tax, the income tax, etc. In addition, business expenses that are not recognized for tax purposes when determining the taxable income are presented, as well as the application of VAT in transactions.